Adds short range wireless and key embedded customersBy Nick Flaherty www.flaherty.co.uk
SiGe Semiconductor has had a chequered few years and has finally succumbed, being bought by up and coming power amplifier supplier Skyworks in a deal worth up to $275m.
The acquisition of SiGe complements Skyworks’ wide area front-end solutions by adding SiGe’s innovative short range, silicon-based products. As a result, Skyworks will be able to offer customers a comprehensive wireless networking product portfolio, supporting all key operating frequencies with architectural flexibility to address a variety of high growth applications including smart phones, tablets, gaming consoles, notebook PCs and home automation systems. Key SiGe customers include Cisco, Dell, Huawei, Hewlett-Packard, NetGear, Itron, Microsoft, Nintendo, Samsung and Sony.
“Skyworks’ acquisition of SiGe Semiconductor underscores our commitment to capitalize on ubiquitous wireless connectivity,” said David J. Aldrich, president and CEO of Skyworks. “To that end, this acquisition is highly complementary in terms of our addressed markets, sales channels, process technologies, design methodologies and baseband partnerships. At the same time, the SiGe business presents significant operational and cost synergies yielding immediate earnings accretion and long-term shareholder value creation.”
“Skyworks clearly represents the best strategic and cultural fit for SiGe Semiconductor,” said Sohail Khan, president and chief executive officer of SiGe Semiconductor. “Both companies have a long history of front-end innovation and a shared vision of the future of band-intensive wireless networking. Together, we can develop and deliver products of unprecedented integration and improve our customers’ performance in the increasingly connected wireless world.”
Skyworks will pay $210 million in cash, plus an additional $65 million if certain performance targets are met over the next 12 months.